KPV warranty conditions

Version September 2010GENERAL TERMS OF SUPPLY, BUSINESS AND PAYMENT1. SCOPE1.1. These terms of business are valid for every delivery of KPV Solar GmbH as of 01.09.20101.2. The conditions form an integral part of every offer issued by KPV Solar GmbH and of every contract concluded with KPVSolar GmbH. General terms of business of whatever kind which are contradictory to these terms of business will not beconsidered as set and will have no legal force.1.3. Deviations from these conditions are only effective when the contracting parties have expressly agreed them in writing.2. OFFERS2.1. Offers from KPV Solar GmbH are strictly non-binding.2.2. Offer documents may not be either duplicated or made available to third parties without KPV Solar GmbH’s explicitconsent. KPV Solar GmbH reserves the ownership and copyright of these documents. They can be reclaimed at any time.At the request of KPV Solar GmbH all copies, including electronic copies, must be destroyed.3. CONCLUSION OF THE CONTRACT3.1. The contract is only considered to be concluded when KPV Solar GmbH has issued a written order confirmation after thereceipt of order and this has been received by the purchaser, or a delivery has been handed over to the haulier.3.2. The information contained in the technical documentation, public remarks by the consigner or the manufacturer, especiallyin advertising, or in the information contained in the descriptions included with items is only relevant, if expressly referred toin the order or the order confirmation.3.3. Subsequent modifications or additions and additional agreements will only become effective when confirmed in writing.4. PRICES4.1. Unless otherwise agreed, prices apply ex works and ex stock respectively of KPV Solar GmbH, not including package,dispatch, installation, insurance and value added tax, which are invoiced to the purchaser separately and are to be takenover by the latter.4.2. If taxes or other duties are due in connection with the delivery in the purchaser’s country, these are to be borne by thepurchaser alone.4.3. The prices are based on the costs at the date of the conclusion of the agreement. If between the conclusion of theindividual contract and the performance of the service there is an increase in the costs of materials, or additional servicesor additional costs are triggered by circumstances which are beyond the influence of KPV Solar GmbH, the subsequentprices will increase accordingly, except for when the period between order placement and the performance of the service isless than 2 months.5. DELIVERY5.1. Delivery periods are always non–binding, unless a fixed deadline has been expressly arranged. The delivery period beginswith the date of the order confirmation signed by KPV Solar GmbH. When goods are supplied against a letter of credit, thedelivery period starts with the date on which the letter of credit is opened.5.2. The delivery period is considered to have been met if the delivery has left the factory or the warehouse or readiness fordispatch has been notified by the expiry of the period.5.3. KPV Solar GmbH is entitled to undertake part deliveries and invoice these. If KPV Solar GmbH makes part deliveries, thepurchaser may declare his withdrawal only in respect of the part deliveries which have not yet been delivered inaccordance with Paragraph 5.5.5.4. If there is a delay in delivery caused by circumstances beyond the control of KPV Solar GmbH, for example labourconflicts, fire, seizure, embargo or other instance of force majeure, an adequate extension of the delivery period isconsidered as having been agreed.KPV Solar GmbHSolarstrasse 19300 Sankt Veit/GlanAUSTRIAT +43 (0) 4212 33 300 0F +43 (0) 4212 33 300 799E office@kpv-solar.comW www.kpv-solar.comManaging directors:G. Rabensteiner, R. HirschlCommercial register: 344176tVAT number: ATU 65593324Bank details: RLB KärntenBank code: 39000, Acct.no.: 1.122.795IBAN: AT26 3900 0000 0112 2795SWIFT/BIC: RZKTAT2K

Version September 20105.5. KPV Solar GmbH is not liable for delays in delivery through no fault of its own or which are due to minor negligence. Insuch cases the purchaser shall renounce the right to withdraw from the contract and the right to claim damages. If KPVSolar GmbH has caused the delay in delivery at least through gross negligence, the purchaser can either demandfulfilment or after setting an adequate period of grace he has the right to withdraw from the contract. In the case ofspecially designed products it must be borne in mind when setting the period of grace that it is impossible for KPV SolarGmbH to use elsewhere parts which have already been fitted, and the period of grace must therefore be twice as long asfor supplies for which no specially designed parts are required.5.6. If the purchaser does not accept goods provided in accordance with the contract at the contractually agreed place or time,KPV Solar GmbH can either demand fulfilment or, after setting a deadline for acceptance, can withdraw from the contract.If by chance the supply in such a case of default of acceptance should perish after having been made ready, then KPVSolar GmbH shall not be obliged to supply a replacement delivery but reserves the claim to payment.5.7. Dispatch is always made at the purchaser’s own costs and risk, including freight paid delivery. KPV Solar GmbH hasfulfilled its contractual duties and the risk is transferred to the purchaser when KPV Solar GmbH hands over the orderedgoods to the haulier (post, rail or haulier).6. PAYMENT6.1. Unless anything different has been agreed in writing, payment is to be made before the delivery of the goods net to thepoint of payment to be specified by KPV Solar GmbH.6.2. The purchaser is not entitled to retain payment due to warranty claims. Offsetting with other counterclaims which arelegally associated with the purchaser’s liabilities but are not acknowledged by KPV Solar GmbH is possible by consumersbut not by companies.6.3. If the purchaser falls into arrears with an agreed payment KPV Solar GmbH can- insist on fulfilment of the contract- postpone the fulfilment of its own obligations until the receipt of the payments which are in arrears- charge interest on late payments from the due date at % p.m. plus VAT; and- invoice pre-procedural costs, especially the costs of reminders and the costs of lawyers according to the tariff in force.6.4. Discounts and bonuses granted are subject to the suspensory condition of the receipt of full payment.6.5. The delivered goods remain the property of KPV Solar GmbH until full payment. In the case of resale, including furtherprocessing, the purchaser undertakes to assign his claim from the resale to KPV Solar GmbH as security for the claim tothe purchase price, and to record this in his books and records.7. WARRANTY7.1. For articles of trade sold by KPV Solar GmbH, unless otherwise explicitly agreed in writing, the warranty terms of therespective supplier shall apply, and at the least however the statutory warranty period of two years according to § 933ABGB [Austrian Civil Code]. KPV Solar GmbH is entitled to free itself from any duty of warranty and compensation ifclaims resulting from this are assigned to suppliers of the purchaser.7.2. For photovoltaic modules from KIOTO Photovoltaics GmbH the following warranty conditions apply:I. Product warrantyI.1.KPV Solar GmbH guarantees that the modules from KIOTO Photovoltaics are free of defects for a period of twelve(12) years.II.Performance warrantya. for the first year from the date of delivery to the customer through KPV Solar GmbH the peak power* (Pmpp) instandard test conditions will not be lower than 98% of minimum peak power (peak power min, Pmpp.min) in thecontext of the performance tolerance as specified in KPV Solar GmbH’s product information sheet at the date ofdelivery.KPV Solar GmbHSolarstrasse 19300 Sankt Veit/GlanAUSTRIAT +43 (0) 4212 33 300 0F +43 (0) 4212 33 300 799E office@kpv-solar.comW www.kpv-solar.comManaging directors:G. Rabensteiner, R. HirschlCommercial register: 344176tVAT number: ATU 65593324Bank details: RLB KärntenBank code: 39000, Acct.no.: 1.122.795IBAN: AT26 3900 0000 0112 2795SWIFT/BIC: RZKTAT2K

Version September 2010b. From the second to the twenty-fifths year from date of delivery to the customer through KPV Solar GmbH the peakpower* (Pmpp) in standard test condition will not be lower than 98-(n*0,75)% of the minimum peak power (peakpower min, Pmpp.min) in the context of the performance tolerance as specified in KPV Solar GmbH’s productinformation sheet at the date of delivery, whereas n is the number of full years passed since the date of delivery.If the loss of performance is due to faulty components KPV Solar GmbH is entitled to assign claims in respect ofsuppliers to the purchaser. In this event the significant terms of the supplier’s guarantee shall apply.* Peak Power means the power in WP (Watt Peak) which a PV-module in MPP (maximum power point – maximum power peak) produces. The standard testconditions are:(a) light spectrum corresponding to sunlight at AM (atmospheric mass) 1.5;(b) radiation of 1000 W per m² and(c) cell temperature of 25°CMeasurements are made in accordance with the standard IEC 60904 at the connectors to the laminate, according to calibration by a measuring device,corresponding to the calibration and measuring standards of KIOTO Photovoltaics GmbH modules at the date of manufacture of the module and underconsideration of the measuring tolerance according to industry standards. KIOTO Photovoltaics GmbH’s calibration standard corresponds to the standards ofinternational institutes which are accredited for this purpose.III.III.1.III.2.III.3.III.4.Warranty and guarantee prerequisitesThe product warranty and performance warranty from KPV Solar GmbH assume that:a) according to the proper discretion of KPV Solar GmbH the damages being claimed are due to material ormanufacturing defects which are under the influence of KPV Solar GmbH or KIOTO Photovoltaics GmbH;b) the installation of the PV solar modules supplied has been undertaken according to the assembly instructions inthe respective valid version;c) the assembly has been carried out by a licensed specialist company (plant construction, electrical installer orfitter);d) KPV Solar GmbH was informed in writing immediately the defect appeared and that KPV Solar GmbH or itsagents was given the opportunity of examining the objections on the spot immediately any defects appeared;e) written confirmation exists of proper maintenance and an annual inspection and servicing by a specialistcompany licensed to do this; (confirmation of the works carried out to be submitted when the warranty claim isasserted);f) there is no surface interference (e.g. by fine sand dust);g) the upper surface has been cleaned annually using only water, without chemical additives, with the date andextent of the cleaning being documented in writing;h) the damages are not attributable to a reason excluded in 7.3.2.When asserting warranty and guarantee claims the original invoice is to be attached and the delivery date, moduletype and serial number must be stated. The occurrence of an incident, covered by warranty, due to the fact that theperformance guarantee specified under II. has fallen short, must be demonstrated by the presentation of ameasurement report by a recognised expert or institute. The measuring tolerance will be taken into account to thefavour of KPV Solar GmbH. The measurement report must show the date of testing. When asserting claims the dateof testing shown in the measurement report relating to the reduced performance must be no more than 2 months old.KPV Solar GmbH reserves the right to prove by means of measurement undertaken by KPV Solar GmbH or ameasurement undertaken by a third party instructed by KPV Solar GmbH that contrary to the measurement reportsubmitted the guaranteed performance does indeed exist. If the measurement instructed by KPV Solar GmbH leadsto the conclusion that the aberration is admissible according to II. or that there is no aberration, then KPV Solar GmbHis entitled to ask the purchaser to reimburse the third party’s costs.Warranty and guarantee claims will expire six months after the incident covered by guarantee comes to light.However the period of limitation will end at the latest with the expiry of 10 or 25 years (depending on how high thedecline in performance turns out to be according to the measurement report) from the day of delivery of the module.In respect of the performance guarantee under II., the entitlement to claim shall apply solely to the operator of thesolar equipment at the time of the assertion of a claim under guarantee who has himself acquired the module for hisown operation (and not for purposes of resale) or has acquired the building or land on which the module was firstmounted. Claims by intermediaries or installation companies or subsequent acquirers of the modules are not justifiedunder this guarantee. The guarantee exists independently of contractual warranty claims towards the vendor of themodules and of claims beyond the scope of the contract. Such claims will be neither limited nor justified towardsKIOTO Photovoltaics GmbH by this guarantee insofar as no direct purchase agreement exists with KPV Solar GmbH.The guarantee is an independent, voluntary and gratuitous service by KPV Solar GmbH and has no effect on theagreements on the product characteristics between the vendor and the purchaser. The provider of the guarantee andKPV Solar GmbHSolarstrasse 19300 Sankt Veit/GlanAUSTRIAT +43 (0) 4212 33 300 0F +43 (0) 4212 33 300 799E office@kpv-solar.comW www.kpv-solar.comManaging directors:G. Rabensteiner, R. HirschlCommercial register: 344176tVAT number: ATU 65593324Bank details: RLB KärntenBank code: 39000, Acct.no.: 1.122.795IBAN: AT26 3900 0000 0112 2795SWIFT/BIC: RZKTAT2K

Version September 2010the addressee for all queries and claims in connection with incidents covered by guarantee is solely KPV SolarGmbH.7.3. Warranty7.3.1. Warranty shall take place at the choice of KPV Solar GmbH by repair of the purchase object, replacement of thedefective parts, exchange or price reduction. The purchaser’s right to conversion is amicably ceded. The exchangedparts will enter into the ownership of KPV Solar GmbH. The wages and costs incurred for assembly and dismantlingare to be borne by the purchaser unless the latter is a consumer in the sense of the Consumer Protection Act[KSchG]. This applies analogously to all guarantee agreements, in particular the performance guarantee. Furtherwarranty claims shall not exist. In particular KPV Solar GmbH will not bear any further costs from this guarantee andshall not be liable for loss of profits or sales or other consequential damages caused by a defect. No extension of theguarantee shall occur through the reporting of a defect.7.3.2. The purchaser is obliged to inspect the goods delivered immediately. Warranty claims will only be preserved if thedefects which have become apparent are reported immediately in writing. Notification by word of mouth or bytelephone will not satisfy the requirement for inspection and reporting defects in writing.KPV Solar GmbH’s warranty obligation will only apply to defects which become apparent provided the assembly andoperating instructions supplied are complied with. In particular it shall not apply to damages which have arisen due tothe following reasons:repairs or alterations undertaken by the purchaser or third parties without the written consent of KPV SolarGmbH (for instance manipulation of the framework or the connection box of the modules);unsuitable or inappropriate use, faulty assembly or operation by the purchaser or third parties;natural operating wear or deterioration due to force majeure;incorrect or negligent handling – in particular excessive demands, unsuitable equipment or unsuitable buildingground;chemical, electrochemical or electrical effects or over- or under-supply of energy.7.3.3. The particular regress according to § 933 b AGBG is not possible and is expressly excluded,.8. LIABILITYKPV Solar GmbH is liable for defects outside the area of application of the Product Liability Act[Produkthaftungsgesetz] only insofar as intention or gross negligence can be proved on the basis of the statutoryprovisions. Liability for minor negligence, for the reimbursement of consequential damages, savings not achieved,loss of interest or compensation claims by a third party is excluded. Suppliers do not count as vicarious agents of KPVSolar GmbH and therefore KPV Solar GmbH shall not be liable for any wrongdoing by suppliers. If any conditions forinstallation and operation or any authorisation requirements by the authorities are not followed, any compensation fordamages is excluded.9. PLACE OF JURISDICTION AND LAW7. For all disputes arising directly or indirectly from this contract the sole competence of the responsible court in Klagenfurt isagreed.8. Austrian jurisdiction applies to all contractual relationships with the exclusion of the rules regarding the conflict of laws andthe UN Convention on Contracts for the International Sale of Goods (UNCITRAL).KPV Solar GmbHSolarstrasse 19300 Sankt Veit/GlanAUSTRIAT +43 (0) 4212 33 300 0F +43 (0) 4212 33 300 799E office@kpv-solar.comW www.kpv-solar.comManaging directors:G. Rabensteiner, R. HirschlCommercial register: 344176tVAT number: ATU 65593324Bank details: RLB KärntenBank code: 39000, Acct.no.: 1.122.795IBAN: AT26 3900 0000 0112 2795SWIFT/BIC: RZKTAT2K